Horizonte Minerals (AIM:HZM, TSX:HZM) Closing of $346.2M Senior Debt Facility & $25M COF

Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) the nickel company focused in Brazil is pleased to announce that it has signed binding loan documentation.

Including a comprehensive inter-creditor agreement and loan agreements with two export credit agencies (“ECA”) in relation to its previously announced senior secured project finance debt facility of US$346.2 million (the “Senior Debt Facility”) (29 December 2021). The Senior Debt Facility has been executed between Araguaia Niquel Metais LTDA, a wholly owned subsidiary of Horizonte and a syndicate of international financial institutions (being BNP Paribas, BNP Paribas Fortis, ING Capital LLC, ING Bank N.V., Natixis, New York Branch, Société Générale and SEK, Swedish Export Credit Corporation) (together the “Senior Lenders”) and two export credit agencies (being EKF, Denmark’s Export Credit Agency and Finnvera plc, Finland’s Export Credit Agency).

Senior Debt Facility

The Senior Debt Facility will include the following:

  • Commercial senior facility of US$200,000,000 provided by the Senior Lenders;
  • ECA facility of US$74,562,000 guaranteed by EKF;
  • ECA facility of US$71,638,000 guaranteed by Finnvera;

First drawdown under the Senior Debt Facility is expected to occur in the fourth quarter of 2022 following satisfaction of certain conditions precedent customary for transactions of this nature.

Cost Overrun Facility

Horizonte has also signed binding loan documentation in relation to its previously announced (23 November 2021) US$25 million Cost Overrun Debt Facility (the “COF”) with OMF Fund III (“Orion”). Entering into the COF is a condition precedent to first drawdown under the Senior Debt Facility. The COF will be available for drawdown in the case of a cost overrun against the construction schedule and budget, subject to certain conditions including the Company having deployed 90% of the funding from the equity fundraise and convertible notes announced on 23 November 2021 toward the construction of the Araguaia ferronickel project.

Details of the COF:

  • Amount: US$25 million
  • Maturity: 3 months after the final maturity date of the Senior Debt Facility
  • Interest: 13.00% per annum
  • Secured and subordinated to the Senior Debt Facility

Convertible Loan Notes

Horizonte is also pleased to confirm the satisfaction of all material conditions precedent in relation to the previously announced (23 November 2021) US$65 million Convertible Loan Note Issue (“Convertible Notes”) with Orion and La Mancha Investments s.à r.l. (“La Mancha”), with full drawdown expected in the short term.

Horizonte CEO, Jeremy Martin commented: “Horizonte is delighted to have completed the final documentation required for the Senior Debt Facility and Cost Overrun Facility for the construction of the Araguaia ferronickel project. The funding process has been complex but, the US$633 million funding package is transformational for the Company. With a fully funded, tier one project, under construction Horizonte is uniquely positioned with our ability to bring a scalable production profile to the nickel market which is currently facing significant supply challenges.

We would like to thank the Lenders, Orion and La Mancha for their continued support and look forward to reporting on our progress as we finalise key equipment and services contracts and work on site moves towards the start of earthworks for the RKEF processing plant facility in Q2.”

For further information, visit www.horizonteminerals.com or contact:

Horizonte Minerals plc

Jeremy Martin (CEO)

Anna Legge (Corporate Communications)

info@horizonteminerals.com

+44 (0) 203 356 2901


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